Kenya KRA PIN — Complete Tax ID Guide
Personal Identification Number (PIN)
In Kenya, the Kenya Revenue Authority (KRA) issues a Personal Identification Number (PIN) — functionally the country's Tax Identification Number (TIN) — to individuals aged 18 and above and to all registered entities. The PIN is the single identifier used across every tax head administered by KRA, including Value Added Tax (VAT), income tax, Turnover Tax (TOT), Withholding Tax (WHT), and excise duty.
Once issued, the PIN does not expire and requires no periodic renewal. Holders may apply for PIN cancellation or obligation adjustment under specific conditions via the iTax portal.
PIN Format
Kenya's PIN is an 11-character alphanumeric identifier structured as one leading letter, nine digits, and one trailing letter. Both letters must be uppercase; hyphens and spaces are never used.
| Taxpayer Type | Format | Example |
|---|---|---|
| Individual | A + 9 digits + letter | A123456789X |
| Entity (company, NGO, etc.) | P + 9 digits + letter | P123456789X |
The leading letter — A for individuals, P for entities — is the only character that varies by taxpayer category. The nine intervening digits are system-generated, and the trailing letter is a check character. Always enter the PIN in full uppercase without any separator characters.
Official verification portal: PIN Checker — KRA iTax
Who Requires a KRA PIN
A KRA PIN is a mandatory prerequisite for a broad range of transactions in Kenya:
- Filing and paying any tax type (VAT, income tax, TOT, WHT, excise)
- Registering a business name or company with the Registrar of Companies
- Opening a bank account (business or personal)
- Registering a motor vehicle or obtaining a driving licence
- Registering land, stamping instruments, or paying Land Rent
- Applying for trade licences and business permits
- Obtaining utilities (water, electricity connections)
- Generating and transmitting invoices via eTIMS (mandatory for all businesses)
- Contracting for the supply of goods and services to government bodies
- Facilitating goods importation and customs clearance
PIN Registration for Foreigners
KRA distinguishes PIN registration requirements by immigration category:
Employed foreigners must provide a valid passport with a work permit endorsed inside it, plus an employer introduction letter on company letterhead.
Foreign investors must provide a valid passport and either a KenInvest (Kenya Investment Authority) endorsement letter for investments of USD 100,000 and above, or a Class G Investor Permit for investments below that threshold.
Non-resident foreigners with a tax liability in Kenya (e.g., short-term consultants) must present an Alien ID card or passport and evidence of their engagement in Kenya.
All foreign applicants register via the iTax online portal at itax.kra.go.ke. KRA's PIN registration pages cover each immigration category in detail and list the exact document checklist per category.
eTIMS: Electronic Invoicing Obligation
The Finance Act 2023 made it mandatory for all persons carrying on business in Kenya — regardless of VAT registration status or annual turnover — to generate and transmit invoices electronically through the Electronic Tax Invoice Management System (eTIMS), effective 1 September 2023.
For non-VAT registered businesses, the onboarding grace period ran to 31 March 2024. Critically, from 1 January 2024, any business expenditure not supported by a valid eTIMS invoice is non-deductible for income tax purposes. This is the reason corporate buyers now routinely reject invoices that lack eTIMS compliance — accepting a non-compliant invoice creates an irrecoverable tax cost for the buyer.
Businesses with annual turnover below KES 5 million have two free compliance options:
- eTIMS Lite — a USSD solution accessible by dialling
*222#on a mobile phone, or via the web portal at ecitizen.kra.go.ke - Buyer Initiated Invoicing Solution — the corporate buyer generates the eTIMS invoice on the supplier's behalf via KRA's eCitizen platform
Turnover Tax (TOT) and VAT Dual Registration
TOT applies to resident businesses with annual gross turnover between KES 1 million and KES 25 million, at a rate of 1.5% of gross sales, effective 1 July 2023. TOT returns are due by the 20th day of each calendar month.
The dual-obligation trap: once a business's vatable supplies reach KES 5 million in any rolling 12-month period, it must additionally register for VAT — but does not automatically exit TOT. Both obligations then run simultaneously: monthly TOT returns (by the 20th), monthly VAT returns (also by the 20th), and annual income tax filings.
Late VAT registration carries a penalty of 5% of the tax due or KES 10,000, whichever is higher.
To exit TOT entirely, a business must submit a written notice to the Commissioner on iTax electing to be assessed under standard Income Tax Act provisions instead.
Significant Economic Presence (SEP) Tax for Non-Residents
The Tax Laws (Amendment) Act 2024 — assented to on 11 December 2024 and effective 27 December 2024 — abolished the 1.5% Digital Services Tax and replaced it with the Significant Economic Presence (SEP) tax. The KRA published draft SEP Tax Regulations in September 2025 for public comment.
Under the SEP framework, a non-resident person providing services via the internet or any electronic network to users in Kenya is liable, regardless of whether they have a physical presence in Kenya. Key mechanics:
- Deemed taxable profit: 10% of gross monthly revenue from Kenyan users
- Tax rate: 30% corporate rate applied to the deemed profit
- Effective rate: 3% of gross revenue — double the old Digital Services Tax rate
- Filing deadline: Return and payment due by the 20th of the following month
- Registration threshold: Removed; even low-revenue non-resident providers face SEP obligations
- Penalty for non-registration: The greater of KES 100,000 or 5% of tax owed
Non-residents must either register under KRA's simplified tax registration framework (which issues a PIN for filing purposes) or appoint a Kenya-resident tax representative who becomes jointly liable.
Withholding Tax on Non-Resident Payments
When a Kenyan business pays a foreign (non-resident) company for services, the Kenyan payer must withhold tax at source and remit to KRA within five working days of the deduction. Standard non-resident withholding income tax rates:
| Payment Type | Rate | Nature |
|---|---|---|
| Management and professional fees | 20% | Final tax |
| Royalties | 20% | Final tax |
| Digital content monetization | 20% | Final tax (Finance Act 2023, from 1 July 2023) |
| Dividends | 10% (5% for EAC residents) | Final tax |
| Interest | 15% | Final tax |
Where Kenya has a Double Tax Agreement (DTA) with the non-resident's country of residence — including the UK, Canada, Germany, and India — the DTA may provide for a reduced rate or full exemption. Where no DTA applies, the withheld amount is a final tax; the non-resident cannot claim it back. Foreign companies billing Kenyan clients should price contracts gross, as the payer will remit only the net after withholding.
Frequently Asked Questions
As a foreign national in Kenya, do I need an alien card before I can get a KRA PIN — and what is the catch-22 with bank accounts?
There is no blanket alien-card requirement. KRA distinguishes by immigration category: employed foreigners need a valid work permit endorsed in their passport plus an employer introduction letter; investors need a valid passport and either a KenInvest endorsement letter (investments USD 100,000 and above) or a Class G Investor Permit below that threshold. [1] The catch-22 documented in expat communities arises because most Kenyan banks require a KRA PIN to open an account, yet the PIN itself requires a valid immigration permit — something newly arrived foreigners may not yet hold. [2] The practical workaround for investors is to engage KenInvest before arrival; employees must ensure their employer completes the work permit process before a bank account is needed.
My small business received a rejection from a corporate buyer who says my invoice is invalid without eTIMS — but I thought micro-businesses were exempt. Who is right?
The buyer is correct. All persons carrying on business in Kenya — regardless of VAT registration status or annual turnover — must generate and transmit invoices electronically via eTIMS. [3] The Finance Act 2023 mandated this from 1 September 2023, with a grace period for non-VAT businesses running to 31 March 2024. From 1 January 2024, any business expense not backed by a valid eTIMS invoice is non-deductible for income tax — precisely why corporate buyers reject non-compliant invoices. Businesses with turnover below KES 5 million can comply for free via the eTIMS Lite USSD solution (*222#) or by asking the buyer to generate the invoice through KRA's Buyer Initiated Invoicing Solution on eCitizen. [4]
My business uses Turnover Tax (TOT) — at what point must I also register for VAT, and can I opt out of TOT entirely?
TOT applies to resident businesses with annual gross turnover between KES 1 million and KES 25 million at a rate of 1.5% of gross sales (effective 1 July 2023). [5] Once your vatable supplies exceed KES 5 million in any rolling 12-month period you must also register for VAT — you do not exit TOT automatically, creating simultaneous monthly filing obligations for both taxes and annual income tax. Late VAT registration carries a penalty of 5% of tax due or KES 10,000, whichever is higher. To exit TOT entirely, submit written notice to the Commissioner on iTax electing to be taxed under standard Income Tax Act provisions. Businesses approaching the KES 5 million vatable-supplies threshold should track cumulative turnover monthly to avoid a surprise dual-registration obligation. [5]
Kenya replaced its 1.5% Digital Services Tax with the SEP tax — what does this mean for a non-resident SaaS or digital marketplace business selling to Kenyan users?
The Tax Laws (Amendment) Act 2024, effective 27 December 2024, abolished the 1.5% Digital Services Tax and replaced it with the Significant Economic Presence (SEP) tax. [6] The SEP tax is structurally heavier: deemed taxable profit is set at 10% of gross monthly revenue from Kenyan users, taxed at the 30% corporate rate, producing an effective rate of 3% of gross revenue — double the old DST rate. The 2025 draft SEPT Regulations removed the KES 5 million annual threshold entirely, meaning even low-revenue non-resident digital service providers with Kenyan users now face SEP obligations. Non-residents must register under KRA's simplified framework — which issues a PIN for filing — or appoint a Kenya-resident tax representative. Returns and payment are due by the 20th of the following month; failure to register carries a penalty of the greater of KES 100,000 or 5% of tax owed. [6]
What withholding tax rate does a Kenyan business apply when paying a foreign company for management fees, technical services, or digital content?
KRA requires the Kenyan payer to withhold income tax at source and remit it within five working days of deduction. Standard rates for payments to non-residents: management and professional fees — 20%; royalties — 20%; digital content monetization — 20% (Finance Act 2023, effective 1 July 2023). [7] The withheld amount is a final tax for the non-resident — it cannot be reclaimed unless a Double Tax Agreement (DTA) between Kenya and the payee's country provides for a reduced rate or exemption. Kenya has DTAs with the UK, Canada, Germany, India, and several other countries. [8] Foreign companies billing Kenyan clients should price contracts gross, as the payer is legally obligated to deduct even if the contract is silent on the point.
Related Resources
- Ghana TIN number guide — East Africa's neighbour in West Africa uses a similar mandatory e-invoicing model under GRA e-VAT
- Nigeria TIN number guide — Africa's largest economy; dual-identifier model with parallel FIRS and JTB systems
- Worldwide directory of VAT and tax ID names — full country list of tax identifier terminology
- Worldwide VAT and GST registration thresholds — registration threshold comparison across 100+ countries
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